# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of The State ofConnecticut and Pfizer, Inc. TRADING AGREEMENT AND ORDER NO.8093A

WHEREAS, the CommissionerofEnvironmental Protection ("Commissioner") and Pfizer, Inc. ("Pfizer"), having agreed to the tenns and conditions set forth in Trading Agreement and Order No. 8093 issued on July 19, 1995, do now, by mutual agreement, supersede said Trading Agreement and Order as follows: A. At the request and with the agreementofPfizer, the Commissioner finds the following:

(Printed on Recycled P.per) 79 Elm Street • Htrlrord, CT 06106·5127 bttp:lldep.lllle.cl.UI All Eql4lll Opportl4lllry Employer Initials: I.

2.

3.

4.

5. Pfizer is a corporation which owns and operates a pharmaceutical p,roduction and research facility at Eastern Point Road, Groton, Connecticut (' facility"). At the facility, Pfizeroperates six (6) dual-fuel fired steam hoilers ("hoilers''), numbered 1, 2, 3, 4, 5, and 8. The Department ofEnvirorunental Protection ("Department") and Pfizer are currently**workin~** on a Trading Agreement and Order to address excess nitrogen oxides ("NUx' ) emissions from boilers I, 2 and 3. Boilers 4, 5 and 8 were projected to emit 925 tons peryear ofNOx between June I, 1995 and May 31, 1996. Pursuant to Section 22a-174-22, Resulations ofConnecticut State Agencies ("Regulations"), the projected NOx emissions for boilers 4, 5, and 8 for that same time period was 632 tons (equivalent to 0.25 pounds per million British thermal units ("lbslMMBtu") of heat input ). In 1996, 10w-NOx burners. flue gas recirculation and natural gas burning capability were installed on/added to boilers 4, 5 and 8, thereby reducing said boilers' NOx emission rates below their 1995 emission rates. Emission reductions achieved through the installation of10w-NOx burners. flue gas recirculation and the burning ofnatural gas are eligible. pursuantto Section 22a174-220)(3) ofthe Regulations. to be considered surplus emissions reductions for purposes ofgenerating emission reduction credits ("ERCs"). Separate continuous emissions monitors ("CEMs") measure NOx emissions from each boiler. The CEM operational trial period for boilers 4 and 5 was completed on July 6, 1996 and on October 15, 1996 for hoiler 8. By monitoring and controlling the combustion process ofboilers 4, 5 and 8, and by burning natural gas. Pfizer has represented that it can minimize NOx emissions so that emissions frequently can 

### be kept below the NOx emission limitations estahlished by Sections 22a-174-22(e) ofthe Regulations. In accordance with the tenns and conditions ofthis Trading Agreement and Order, Pfizer may obtain approval ofactual reductions in NOx emissions generated through combustion control and burning natural gas for use as ERCs. Pursuant to Section 22a-174-22(j) ofthe Regulations, Pfizer intends hoth to
Date:

# 1/4J:J

### Pfizer. Inc. 2 

### TRADING AGREEMENT AND ORDER NO. 8093A

6.

7.



### 8. 

### acquireand generateapproved ERCs until May I, 2003, atthe facility. Approved ERCs are defined forpurposes ofthis Trading Agreement and Order as those for which the CommissIOner

### has provided written authorization foruse in compliance with Section 22a-174-22 

### ofthe Regulations. Prior to receipt 

### ofapproval 

### forERCs generated at the facility, Pfizerhas 

### acquired 270 tons ofapproved ERCs for use atthe facility's boilers 4, 5 and 8. Pfizer will continue to acquire ERCs on an as-needed basis. Pfizerwill provide an accounting ofactual NOx emissions to the DepartmentofEnvironmental 

### Protection, based ondatarecorded by the CEMs pursuantto paragraph D.6. of this Trading Agreement and Order. Ten (10) percentofthe ERCs generated atthe facility shall be retired and permanently removed from all calculations to assure abenefitto the environment. When properly documented by Pfizer, and approved by the Commissioner, the emission reductions identified above, and as computed in accordance with the terms 

### ofthis Trading Agreement and Order, will conform to the requirements of 

### Section 22a-174-220) (3) ofthe Regulations. Specifically, the reductions will be: 

### .B&al because they will result 

### in areduction ofactual emissions released into the air, net ofany consequential increase in actual emissions resulting from shiftingdemand. The emission reductions will 

### be properly measured, recorded 

### and reported. Quantifiable because they are based on CEM data as applied in an appropriate reliable and replicable protocol. providing the rate and total mass amount of reduction. Surplus because they are not required by any Connecticutstatute orregulation 

### mandatedby acurrent State Implementation Plan (SIP), and are not currently relied upon in any applicable attainment plan, any reasonable further progress plan or milestone demonstration. Pennanent because the 10w-NOx burners, flue gas recirculation and natural gas burning capability will be 

### in place and operating. and an appropriate tracking system is in place to monitorall data required to verify and quantify the creation 

### ofERCs. Enforceable because the ERCs are approved by the Commissioner retrospectively afterthe submission by Pfizerofareportthat documents their creation. 9. 

### The emissions trading baseline ("'baseline emission rate") forboilers 4. 5and 8 

### is 0.25 IbsIMMBtu ofheat input when operatingonNo.6 fuel oil, and 0.20 IbslMMBtu 

### ofheat input when operating on natural gas. Said baseline emission


### Initials:

# CJf..fi- Date:

# MeJ1Pfizer, Inc. 

### 3 TRADING AGREEMENT AND ORDERNO. 8093A



### rates are based on the following approved stack tests completed 6/26/96 for boiler4, 6/27/96 for boiler 5 and 9/19/96 for boiler 8.



### BoilerNo. Emission Rate (IbslMMBtu) 4 Natural Gas 0.14 No.6 Fuel Oil 0.26 5 Natural Gas 0.20 No.6 Fuel Oil 0.25 8 Natural Gas 0.13 No.6 Fuel Oil 0.31

10. As documented in Attaclunent 1, attached to and incorporated by reference into 

### this Trading Agreement and Order, 137.7 ERCs were created at boilers 4. 5 and 8 between May 31,1996 and September 24,1998 (97.7 during the ozone season and 40.0 during the non-orone season). Ofthe 97.7 ozone season ERCs, 44 early 

### emission reduction credits were created belowthe standards prescribed in Section 22a-174-22a ofthe Regulations (the NOx Budget Program) during 1997 and 1998 by boilers 5 and 8, and shall be converted into allowances. II. Ten (10) percent ofthese ERCs (13.7) are retired andpennanently removed 

### from all calculations to assure abenefitto the envirorunent, leaving 80 ERCs available for use (44 ozone season and 36 non-ozone season). B. The Commissioner, in accordance with the provisions ofthis 

### Trading Agreement and Order, pursuant to Sections 22a-174-22(d)(4) and 22a-174-22G) ofthe Regulations, will 

### allow approved sources within Connecticutto use 80 tons ofNOx 

### ERCs described in paragraph A.II. ofthis Trading Agreement and Order (44 during the orone season and 

### 36 during the non-ozone season) for purposes ofcompliance under Section 22a-I74- 220) andlor22a-174-3(1)(5) ofthe Regulations to achieve a portion ofthe nitrogen 

### oxide emission reductions required or as emissions offsets for new sources. Upon sufficient documentation as prescribed below. the Commissioner may provide written approval ofadditional creation ofERCs by Pfizer retrospectively. Approved ERCs created by Pfizer may be held by Pfizer ortransferred to other sources. Such ERCs shall remain valid until they are used or until May 1,2003, whicheveroccurs first. C. 

### The Commissioner. in accordance with theprovisions ofthis 

### Trading Agreement and Order. and pursuantto Section 22a-I74-22(J) ofthe 

### Regulations. hereby allows Pfizer to use approved ERCs. as necessary. to achieve the nitrogen oxide emission reduction required by Section 22a-174-22(d)(2) ofthe Regulations.

Initials: 

# c;i"a Date:

# #Pfizer, Inc. 4 TRADING AGREEMENT AND ORDERNO. 8093A

I. required by Section 22a-174-22(d)(2) ofthe Regulations. D. With the agreement ofPfizer, the Commissioner, acting under Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-l77 ofthe Connecticut General Statutes, orders Pfizer as follows: ERe generation. For purposes ofgenerating ERCs from boilers 4, 5, and 8 at tbe facility, Pfizer shall use 0.25 Ibs/MMBtu ofheat input when operating on No.6 fuel oil and 0.20 IbslMMBtu ofheat input when operating on natural gas as the baseline emission rates for boilers 4, 5 and 8, or the proportioned baseline emission rate set forth in footnote 

### 1 ofparagraph D.2. ofthis Trading Agreement and Order, when simultaneously operating on more than one fuel. Pfizer shall use the above referenced baseline emission rate(s) when calculating the proportioned baseline emission rate. When calculating ERCs, Pfizer shall use CEM-recordedNOx emission rates* for each boiler and actual fuel use for each boiler in MMBtu/day, when determining heat input. Ten (10) percent ofall ERC, (tons) created by the boilers shall be retired by the facility and pennanently removed from all calculations to assure a benefitto the environment. However, this ten (10) percent environmental discount shall not apply to ozone season ERCs generated below 0.20 IbsIMMBtu ofheat input during the years of 1997 and 1998 for boilers 5 and 8, should Pfizer decide to convert said ERCs into allowances under proposed Section 22a-174-22a ofthe Regulations (the NOx Budget Program), provided such Regulation has been adopted and becomes effective. *These rates shall be calculated pursuant to the methodology described in 40 Code of Federal Regulations Part 60. 2. When the boilers have daily NOx emissions below the applicable baseline emission rate(s), or the proportioned baseline emission rate, Pfizer shall calculate the amount ofERCs generated, as follows: ERCs generated (tons) [Total heat input ofall fuels in MMBtu x (proportioned baseline emission ratel

- the CEM-recordedNOx emission ratel) -i- 2000 pounds/ton] x (0.90).' !This rate shall be calculated by I) multiplying the heat input ofeach fuel combusted by the baseline emission rate(s) for such fuel; 2) summing those products; and 3) dividing the sum by the total heat input. Ifthe boilers are operating exclusively on one fuel, Pfizermay replace the proportioned baseline emission rate with the applicable baseline emission rate for that fuel. 1This rate shall be calculated pursuant to the methodology described in 40 Code of Federal Regulations Part 60. J.Ten (10) percent ofall ERCs (tons) created by the boilers shall be retired by the facility and pennanently removed from all calculations on a daily basis to assure a benefitto the environment. However, this ten (10) percent environmental discount shall not apply to ozone season ERCs generated below 0.20 IbsIMMBtu ofheat input
Initials: Date:

# 1/JJ/JJ.Pfizer, Inc. 

### 5 

### TRADING AGREEMENT AND ORDER NO. 8093A

3.

4.

5.

6.



### 7.

Initials:

# ®.- during the rears of 1997 and 1998 for boilers 5 and 8, should Pfizerdecide to convert said ERCs IOto allowances under proposed Section 22a-174-22a ofthe Regulations (the NOx Budget Program), provided such Regulation has been adopted and becomes effective. In orderto considera Daily NOx Averaging Period valid for ERC approval, 

### it must contain valid data hours for seventy-five percent (75%) ofthe operating 

### hours in that daily period (example: minimum 18 valid hours for a full 24·hour operating day; mlOlmum 12 hours for 16 operating hours, etc.). A DailyNOx Averaging Period is defined as the total ofall operating hours in a day during which fuel is being fed to each boiler. Additionally, for a data hourto be considered a valid hour, seventy-five percent (75%) minimum data capture requirements must be met for each one-hour block 

### period. All NOx and CO/O, CEMs must comply with the 40 CFR Part 60 Appendix Fdrift criteria. Pfizer shall maintain records for each boiler showing daily NOx mass emissions, and actual NOx emission rates (24-houraverage). Pfizer shall also maintain 

### records showing amonthly total ofall ERCs generated net ofthe ten (10) percent environmental discowlt. In requesting ERC approval, Pfizershall provide documentation containing monthly operating reports ofactual fuel use in MMBtu, daily actual NOx mass emissions and NOx emission rates (24-houraverage), number ofinvalid data 

### hours in each 24·hourperiod, numberofoperating hours perday, and ERCs generated, using the baselineemission rate(s), orthe proportioned baseline emission rate, net ofthe ten (10) percent environmental discount. No laterthan March 1 ofevery yearafter issuance ofthis Trading Agreement and Order, Pfizer shall include with the Annual Emission Statement provided to the Commissioner, a record ofeach sale or othertransfer, and use ofany and all ofthe ERCs approved within and subsequent to issuance ofthis Trading Agreement and Orderuntil all such ERCs have been used. Pfizer shall also include actual NOx emissions from the boilers and the amount ofall ERCs used (including approved ERCs generated at and/orpurchased from other facilities), generated and/or approved for the previous calendar year. These reports shall be on a form prescribed by the Commissioner and shall be in montWy increments. This reporting may cease ifa central registry is approved by the Commissioner. 

### Should Pfizerchoose to discontinue the generation ofERCs, Pfizerwill notify the Commissionerupon discontinuance. Upon sufficient documentation that Pfizerhas met the requirements of 

### paragraphs D.l., D.2., D.3., D.4., and D.5. ofthis Trading Agreement and Order, the Commissioner may provide written approval ofERCs created by Pfizer retrospectively, in addiuon to those approved in paragraph B. ofthis Trading 

### Agreement and Order. Requests for approval ofall subsequentERCs created shall be submitted in writing to the Commissioner. Approved ERCs created by


### Date: 

# q-/'d-f(ff

### Pfizer, Inc. 6 

### TRADING AGREEMENT AND ORDERNO. 8093A



### 8.

9. 

### Pfizermay be held ortransferred to otherpersons. SuchERCs shall remain valid until they are used oruntil May I, 2003, whicheveroccurs first. Should Pfizer choose to generate additional ERCs, reports documenting these ERCs may be submitted on aquarterly or semi-annual basis. Such reports shall be 

### compiled on amonthly basts ERe use. Approved ERCs shall be acquired for the periodbeginning June I, 1995 until Pfizer achieves permanentcompliance forboilers 4, 5and 8withthe emission standards in SectIon22a-174-22(e) ofthe Regulations oruntil May I, 2003, whicheveroccurs first. Pfizer shall acquire approved ERCs, and document, summarize and record thedaily amounts 

### of

### NOxemissions and ERCs used by each boilereach month, and shall maintain and provide such records in accordance with the following and Section 22a-174-4 ofthe Regulations, until May 1,2003:
a. Before the first day ofeach month after May 31, 1996, calculate projected worst case ERCs required for the same month as follows: ERCs (tons) = 

### {(Full load emission rate ("FLER") IbsIMMBtu

- [(0.95) x (allowable emission limit in Section 22a-174-22 

### ofthe 

### Regulations or prop:>rtioned emission rate calculated pursuantto Section 22a-174-22 (f)(Z)(A) ofthe Regulations in 

### IbsIMMBtu)]) x (Estimated fuel use in MMBtu)} .;. 2000 pounds.

1)


### 2)

lnitials: b.

c. 

### Acquire sufficientapproved ERCs no laterthan the first ofeach month to assure compliance for, at aminimum, that month. Excess ERCs from previous months can be 

### applied to subsequentmonths. ERCs required shall be adjusted upwards by 100% ifERCs are not in Pfizer's possession priorto use. No laterthan the twentieth day ofeach month, calculate ERCs used in the preceding month, as follows: Foreach boileroneachday, determine whetherthe 24-hour averageNOx emission rate· exceeds the allowable emission limit in Section 22a-174-22 ofthe Regulations. Foreach boiler with daily NOx emissions exceeding the allowableemission limit in 

### Section 22a-174-22 ofthe Regulations, calculate the amountofERCs required, as follows: ERCs required (tons) {«CEM-recordedNOx daily average emission rate in IbsIMMBtu*)

- [(0.95) x (allowable emission limit in Section 22a-174-22 

### ofthe Regulations or**pro~ioned** 

### emission rate calculated pursuantto Section 22a-174-22(f)(2) A ofthe Regulations in IbslMMBtu)]) x (actual fuel use in M tu)} .;. 2000 pounds.

# Date:~Pfizer, Inc. 7 TRADING AGREEMENT AND ORDERNO. 8093A



### d.

e.

f. *This rate shall be calculated pursuant to the methodology described in 40 Code ofFederal Regulations Part 60. Document and record daily and monthly NOx emissions and ERCs used. Maintain documentation to attest to the fact that ERCs used during the ozone season were generated during the ozone season. The ozone season is from May 1 through September 30 in any calendar year. Generator certification oftbis fact shall be sufficient. After full program review, and ifthe Commissioner deems 

### it appropriate, the Commissioner may allow the survival and use ofthese ERCs beyond April 30, 2003. 

### 10. Pfizer shall retain records and supporting documentation as described in this Trading Agreement and Order for a minimum aCtive years, commencing on the date such records were created. Pfizer shall provide the records specified above to the Commissioner within thirty (30) days ofreceipt ofa written request from the Commissioner. 11. Provided that all conditions ofthis Trading Agreement and Orderare met, and prior to May 1.2003, Pfizer shall comply during operation ofeach boiler with a full load emission rate limitation of0.366 IbsIMMBtu heat input, averaged on a 24-hour basis. 12. No later than May I, 2003, Pfizer shall comply with the requirements ofSection 22a-174-22(d)(2) ofthe Regulations unless this Trading Agreement and Order is otherwise extended by the Commissioner. 13. As used in this Trading Agreement and Order, "Commissioner" means the Commissioner ofEnvironmental Protection or an agent ofthe Commissioner. 14. Notjfication ofnoncompljance, In the event that Pfizer becomes aware that it did not or may not comply, or did not or may not comply on time, with any requirement ofthis Trading**A~reement** and Order or ofany document required hereunder, Pfizer shall immediately notify the Commissioner and shall take all reasonable steps to ensure that any noncompliance ordelay is avoided or, if unavoidable, is minimized to the greatest extent possible. In so**notifyin~** the Commissioner, Pfizer shall state in writing the reasons for the noncomphance or delay and propose, for the review and written approval ofthe Commissioner, dates by which compliance will 

### be achieved, and Pfizer shall comply with any dates which may 

### be approved in writing by the Commissioner. Notification by Pfizer shall not excuse noncompliance ordelay, and the Commissioner's approval ofany compliance dates proposed shall not excuse noncompliance or delay unless specifically so stated by the Commissioner in writing, IS. Certjfication ofdocuments. Any document, including hut not limited to any notice, which is required to he submitted to the Commissioner under this
Initials:

# d.il..--**Date:~**

### Pfizer, Inc. 

### 8 TRADING AGREEMENT AND ORDERNO. 8093A

16.

17.



### 18

19.



### Initials: Trading Agreement and Order shall be 

### signed by the chiefexecutive officer of Pfizer or aduly authorized representative ofsuch officer, as those terms are defined in Section 22a-430-3(b)(2) ofthe Regulations, and hy the individual or individuals responsible for actually preparing such document, each ofwhom shall examine and be familiar with the mformation submitted in the document and all attachments thereto and shall make inquiry ofthose individuals responsible for obtaining the information to determine that the information is true, accurate, and complete, and each ofwhom shall certify in writing as follows: "I have personally examined and am familiar with the information submitted in this document and all attachments thereto, and I certify thatbased on reasonable investigation, includina my inquiry ofthose individuals responsible for obtaining the informatIon, the submitted information is true, accurate and complete to the best ofmy knowledge and belief. Iunderstand that any false statementmade in the submitted information may be punishable as acriminal offense under Section 22a-175 ofthe Connecticut General Statutes or, in accordance with Section 22a·6 ofthe Connecticut General Statutes, under Section 53a-157b ofthe Connecticut General Statutes, and in accordance with any other applicable statute." Final Agreement and Order. This Trading Agreement and Orderis the final agreement and orderby and between the Commissionerand Pfizer with respect to the matters addressed herein, and shaH notbe modified without the written agreement ofboth parties. False statements. Any false statement in any information submittedpursuantto this Trading Agreement and Ordermay be punishable as acriminal offense under Section 22a-175 ofthe ConnectIcut General Statutes or, in accordance with Section 22a-6, under Section 53a-157b ofthe Connecticut General Statutes. Notice oftransfer: liability ofPfizer and others. Until Pfizerhas fully complied with this Trading Agreement and Order, Pfizer shall notify the Commissioner in writinl; no laterthan fifteen (15) days aftertransferring aU or any portion ofthe operations, the facility, the site orthe business which are the subject ofthis Trading Agreement and Order, or obtaining anew mailing orlocation address. Any license transfer shall be conducted in accordance with Section 22a-60 ofthe Connecticut General Statutes. Pfizerts obligations underthis Trading Agreement and Order shall notbe affected by the passageoftitle to any property to any otherperson or municipality. Any future owner ofthe facility may be subjectto the issuanceofaTrading Agreement and Orderfrom the Commissioner. Commissioner's powers. Nothinl; in 

### this Trading Agreement and Order shall affect the Commissioner's authonty to institute any proceeding ortake any other action to prevent or abate violations oflaw, prevent or abatepollution, recover costs and natural resourcedamages, and to impose penalties for violations oflaw which are willful orcriminally negligent orfor which penalties have not been specifically provided in this Trading Agreementand Order, including but not

# Date:~

### Pfizer, Inc. 9 

### TRADING AGREEMENT AND ORDERNO. 8093A

limited to violations ofany permit issued 

### by the Commissioner. Ifat any time the 

### Commissionerdetermines that the actions taken by 

### Pfizerpursuantto this Trading Agreement and Orderhave not fully achieved compliance with Section 22a-174-22 ofthe Regulations, the Commissionermay institute any proceeding against Pfizerto undertake further investigation or 

### further action. 20. Pfizer's obligations under law. Nothing in this Trading Agreement and Order 

### shall relieve Pfizer ofother obligations under applicable federal, state and local law. 

### 21. Access to records and facility. Any 

### representative ofthe Department of Environmental Protection may enter and inspect the facility and inspect and copy records within normal business hours without prior notice for the purposes ofmonitoring and enforcing the actions required or allowed by this Trading Agreement and Order. 22. No effect on rights ofother persons. This Trading Agreement and Order shall neither create nor affect any rights ofpersons who or municipalities which are not parties to this Trading Agreement and Order. 23. No Creatjon ofProperty Rights. This Trading Agreement and Order does not create any property rights with respect to these ERCs. 24. Notice to Commissioner ofchanges. Within fifteen (15) days ofthe date Pfizer becomes aware ofa change in any information submitted to the Commissioner under this Trading Agreement and Order, or that any such information was inaccurate or misleading orthat any relevant infonnation was omitted, Pfizer shall submit the correct oromitted information to the Commissioner. 25. Submission ofdocuments, Any document required to be submitted to the Commissioner under this Trading A!P'eement and Order shall, unless otherwise specified in writing by the CommiSSIOner, be directed to: Ms. Wendy Jacobs Department ofEnvirorunental Protection Bureau ofAir Management Compliance and Fiefd Operations Division Emissions Trading Unit 

### 79 Elm Street Hartford, Connecticut 06106

Initials: Date:

# 'f./1:1PJ

### Pfizer, Inc. 10 

### TRADING AGREEMENT AND ORDERNO. 8093A

Pfizer consents to the issuance oftms Trading Agreement 

### and Orderwithout furthernotice. The undersigned certifies thathe/she is 

### fully authorized to enter into this Trading Agreement 

### and Order and to legally bind Pfizerto the terms and conditions ofthe Trading Agreement and Order.



### Pfizer. Inc., 

# ?-/; Signature:

# aJ~ Type Name: Edward L. Brennan 

### Type Title: Manager, Env. I Health & Safety Date: Apd 1 28, J999 

### Issu das afinal consent order 

### ofthe Commissioner 

### ofEnvironmental Protection on**-L/jJ.:&::L-~L-_,** 

### 1999

.

CITY OF GROTON LAND RECORDS MAILED CERTIFIED MAIL, RETURN RECEIPT REQUESTED Certified DocumentNo.